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HQ 966517

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January 9, 2004

CLA-2 RR:CR:TE 966517 SG

CATEGORY: CLASSIFICATION

TARIFF NO.: 9404.90.8522; 6304.99.6020; 6304.93.0000; 6303.99.0010; 6303.92.2020

Ms. Shelley Townley
Interglobal Forwarders, Inc.
52 Bobo Street, Suite 18
P.O. Box 1516
Greer, South Carolina 29652

RE: Classification of comforter, pillow sham and bed skirts; NAFTA Originating Goods; Self-Produced Material; Country of Origin; NAFTA Preference Override; CITA Quota/Visa Requirements.

Dear Ms. Townley:

This is in response to your letter of June 2, 2003, on behalf of your client, Sheridan USA, in which you request a binding ruling regarding classification, eligibility for North American Free Trade Agreement (NAFTA) preferences and country of origin determination for certain comforters, pillow shams, and bed skirts which will be imported into the United States.

FACTS:

The articles in issue are comforters, pillow shams, and bed skirts imported from Mexico. We are advised that the face fabric of all of these items will be made from 100 percent man-made fiber woven fabrics imported from China, Taiwan or India. These woven fabrics are described as: 100 percent polyester printed woven fabric; 100 percent polyester jacquard woven fabric of yarns of different colors; 54 percent rayon/46 percent polyester jacquard woven fabric of yarns of different colors; and 60 percent polyester/40 percent nylon crushed taffeta dyed woven fabric. The back fabric of some of these items will be made in Mexico and in some cases, the back fabric will be made in China, Taiwan or India. You advise that in Mexico the fabric will be cut and sewn into comforter shells, pillow shams and bed skirts. The comforters will be stuffed (with Mexican origin batting fabric), sewn closed, and quilted in Mexico. The skirt aspect of the bed skirt will be made from the fabric described above, however the platform aspect of the bed skirt
will be made from bleached white 50 percent poly/50 percent cotton woven fabric made in Mexico. No samples were submitted.

The manufacturing operations are as follows. The face fabrics, some back fabrics, and skirt fabrics are woven and finished in either China, Taiwan, or India. They are shipped to the United States and forwarded in bond to El Paso. From El Paso, they are exported to Mexico. Some of the back fabrics, the skirt platform fabrics, and the batting fabrics are woven and finished in Mexico. In Mexico, all of the fabrics are cut to the required size and shape. The comforter shell is made, stuffed, sewn closed, and quilted in Mexico. The shams and the bed skirts are sewn and finished in Mexico. The comforters, pillow shams, and bed skirts are packed in Mexico and shipped to the United States. Some of the items will be imported as sets consisting of a comforter, pillow shams and bed shirt. Other items will be imported as individual pieces.

ISSUE:

What is the tariff classification of the imported merchandise?

What is the country of origin for visa/quota purposes?

Do the comforter, shams, and bed skirts qualify as "goods originating in the territory of a NAFTA party" pursuant to HTSUSA General Note 12 (b) and may they be marked as goods of Mexico pursuant to 19 C.F.R. 102.19, the NAFTA preference override?

LAW AND ANALYSIS:

I. CLASSIFICATION

The Harmonized Commodity Description and Coding System Explanatory Notes ("EN") represent the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. The EN, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

Heading 9404, HTSUSA, provides for, among other things, articles of bedding and similar furnishing. The Explanatory Notes to heading 9404, HTSUSA, state in pertinent part:

This heading covers: (B) Articles of bedding and similar furnishing which are sprung or stuffed or internally fitted with any material (cotton, wool, horsehair, down, synthetic fibres, etc.), or are of cellular rubber or plastics (whether or not covered with woven fabric, plastics, etc.). For example:

(2) Quilts and bedspreads (including counterpanes, and also quilts for baby carriages), eiderdowns and duvets (whether of down or any other filling), mattress-protectors (a kind of thin mattress placed between the mattress itself and the mattress support), bolsters, pillows, cushions, pouffes, etc.

Therefore, the subject comforters are provided for pursuant to GRI 1 in subheading 9404.90.8522, HTSUSA, which provides for inter alia, quilts, eiderdowns, comforters and similar articles with an outer shell of man-made fibers.

Heading 6303, HTSUSA, provides for, among other things, bed valances. The bed skirts made from 60% polyester/40% nylon fabrics (synthetic fibers) will be classifiable in subheading 6303.92.2020, HTSUSA. The bed skirts made from 54% rayon/46% polyester fabric (artificial fibers) will be classifiable in subheading 6303.99.0010, HTSUSA.

Heading 6304, HTSUSA, provides for other furnishing articles, excluding those of heading 9404. The pillow shams made from polyester and 60% polyester/40% nylon fabrics (synthetic fibers) will be classifiable under subheading 6304.93.0000, HTSUSA. The pillow shams made from 54% rayon/46% polyester fabric (artificial fibers) will be classifiable in subheading 6304.99.6020, HTSUSA.

When imported as a set, classification of the merchandise under a single heading cannot be determined by applying GRI 1 and we must apply the other GRIs. GRI 3 provides for goods that are, prima facie, classifiable in two or more headings. GRI 3(b) provides that goods put up in sets for retail sale shall be classified as if they consisted of the material or component that gives them their essential character.

According to the Harmonized Commodity Description and Coding System Explanatory Notes, the official interpretation of the Harmonized System at the international level, "goods put up in sets for retail sale" refers to goods which:
consist of at least two different articles which are, prima facie, classifiable in different headings; consist of products or articles put up together to meet a particular need or carry out a specific activity; and are put up in a manner suitable for sale directly to users without repacking.

The merchandise imported as a set meets the qualifications of "goods put up in sets for retail sale." The components of the sets consist of different articles that are, prima facie, classifiable in different headings. They are put up together to carry out the specific activity of furnishing a bed and they are packaged for sale directly to users without repacking. Customs has previously held that the comforter is the component that gives a comforter set its essential character. See Headquarters Ruling Letter (HQ) 959813, dated April 10, 1998. Accordingly, the "comforter" set is classifiable under heading 9404, HTSUSA.

You advise that the comforter shells are made of various man-made woven fabrics. The sets are classifiable under 9404.90.8522, HTSUS, which provides for: "[m]attress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered: Other: Other: Other: Quilts, eiderdowns, comforters and similar articles, with outer shell of man-made fibers.

II. NAFTA ELIGIBILITY- Originating Goods

The subject comforters, bed skirts, and pillow shams undergo processing operations in Mexico and therefore may be eligible for the NAFTA preferential duty free status if they are considered "originating goods" and qualify to be marked as a good of Mexico. To be eligible for the duty preference provided under the NAFTA, goods must be "originating goods" within the rules of origin in General Note 12(b), HTSUSA.

Originating good

General Note 12, HTSUS, incorporates Article 401 of the NAFTA into the HTSUS. General Note 12(a)(ii) provides, in pertinent part:

(ii) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Mexico under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn followed by the symbol “MX” in parentheses, are eligible for such duty rate, in accordance with section 201 of the [NAFTA] Implementation Act.

Accordingly, the comforter, bed skirt and pillow shams, as well as the "comforter set", will be eligible for the special “MX” rate of duty provided each is a NAFTA “originating” good under General Note 12(b), HTSUS, and qualify to be marked as a product of Mexico under the NAFTA Marking Rules. General Note 12(b), HTSUS, provides, in pertinent part:

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if—

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that—

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; Because the merchandise before us is not wholly obtained or produced entirely in Mexico, it will only qualify as an originating good of Mexico if the non-originating materials undergo the applicable change in tariff classification. Therefore, we must ascertain whether the non-originating materials in the subject items imported separately and in a "comforter set" are transformed in Mexico pursuant to General Note 12(b)(ii)(A). To qualify under this provision, the non-originating materials must undergo the change in tariff classification set forth in General Note 12(t), HTSUS. For headings 6303, 6304, and 9404, HTSUSA, the appropriate subdivision (t) rules state that:

A change to heading 6303 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

A change to headings 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

A change to subheading 9404.90 from any other chapter, except from headings 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408 or 5512 through 5516.

The rules for heading 6303 and 6304 only apply to the component that determines the classification of the good.

At the time the fabrics from China, India and Taiwan, used in the manufacture of the comforter, bed skirt, and the pillow shams, are imported into Mexico, they are classifiable in heading 5407 and 5516, HTSUS. Fabric classifiable in heading 5407 or 5516, HTSUS, is excepted from the tariff shift requirement of GN 12(t) for all three headings at issue. The comforter, bed skirt, pillow shams and comforter sets, therefore, do not initially meet the transformation requirement of GN 12(b).

However, when a non-originating material is manufactured into an intermediate article (a "self-produced material") in a NAFTA country prior to being manufactured into the finished article, that intermediate article (rather than the imported raw material) may be designated as the non-originating material for purposes of applying the applicable NAFTA tariff-shift rule.

The NAFTA Rules of Origin Regulations are set forth in 19 CFR Part 181, Appendix ("App."). The term "self-produced material" means "a material that is produced by the producer of a good and used in the production of that good." See 19 CFR Part 181, App., sec. 2(1).

Section 4(8) of the NAFTA Rules of Origin Regulations, 19 CFR Part 181, App. sec. 4(8), states that:

For purposes of determining whether non-originating materials undergo an applicable change in tariff classification, a self-produced material may, at the choice of the producer of a good into which the self-produced material is incorporated, be considered as an originating material or non-originating material, as the case may be, used in the production of that good.

An example is set forth in 19 CFR Part 181, App., sec. 4(9):

Producer A, located in a NAFTA country, produces Good A. In the production process, Producer A uses originating Material X and non-originating Material Y to produce Material Z. Material Z is a self-produced material that will be used to produce Good A.

The rule set out in Schedule I for the heading under which Good A is classified specifies a change in tariff classification from any other heading. In this case, both Good A and the non-originating material Y are of the same heading. However, the self-produced Material Z is of a heading different than that of Good A.

For purposes of determining whether the non-originating materials that are used in the production of Good A undergo the applicable change in tariff classification, Producer A has the option to consider the self-produced Material Z as the material that must undergo a change in tariff classification. As Material Z is of a heading different than that of Good A, Material Z satisfies the applicable change in tariff classification and Good A would qualify as an originating good. On the basis of the information provided, the non-NAFTA produced fabrics, classifiable in heading 5407 or 5516, HTSUS, are made in Mexico into comforter shells, transitional articles in the production of the comforters. The fabric shells which are manufactured prior to the completed comforters will meet the requirements of the tariff shift rule of GN12(t) of heading 9404, HTSUSA. CBP has consistently classified unfinished fabric shells in heading 6307, HTSUSA, as other made up textile articles. (See, e.g., HQ 952492, dated January 29, 1993; HQ 953004, dated February 24, 1993; and HQ 952753, dated January 12, 1993). Therefore, comforters constructed from shells manufactured in non-NAFTA countries will qualify for NAFTA eligibility by virtue of the Chapter 94 tariff shift under the HTSUSA. Likewise by application of the self-produced material rule, the shells produced by Sheridan from rolls of man-made fabric and classifiable in subheading 6307.90, HTSUSA, meet the tariff shift rules. Sheridan may chose to identify the shells as self-produced non-originating materials in accordance with the NAFTA Rules of Origin Regulations. If this choice is made, the comforter shell (classifiable in heading 6307, HTSUS), as well as the "comforter set" consisting of a comforter shell, a bed skirt (classifiable in heading 6303, HTSUS), and pillow shams (classifiable in heading 6304) fall within tariff provisions that are not excepted by the tariff shift rule set forth in subdivision (t) for goods of subheading 9404.90, HTSUS. Accordingly, the comforter shell, and "comforter set" consisting of a comforter shell, bed skirt and pillow shams would be deemed as undergoing the requisite change in tariff classification. Pursuant to the analysis set forth above, the comforter and "comforter set" qualify as originating goods. This is consistent with Headquarters Ruling Letter (HQ) 562498, dated November 13, 2002, and HQ 965986, dated May 1, 2003. Accordingly, the comforter and "comforter set" will be entitled to the special "MX" rate of duty if they qualify to be marked as a good of Mexico and provided that all other NAFTA requirements are met. See generally HQ 562498 (Nov. 13, 2002); HQ 965696 (Sept. 18, 2002); and HQ 965309 (Sept. 18, 2002).

The pillow sham and bed skirt when manufactured in Mexico from the non-originating fabric, also meet the definition of "self-produced material" when they are imported as a part of the "comforter set".

However when the pillow shams or the bed skirt are imported separately, neither is made into a transitional article from which an applicable tariff shift occurs prior to being made into the final article. When the pillow shams and bed skirt are imported separately, there is no self-produced material, only the non-originating fabric and then the final good, the pillow shams and bed skirt. Therefore neither the pillow shams nor the bed skirt meet the definition of "self-produced material" when they are imported separately from the "comforter set".

Accordingly, the pillow shams and bed skirts imported separately are not eligible for the NAFTA preference.

III. NAFTA- Country of Origin

The second element of General Note 12 (a)(ii) is that the goods "qualify to be marked as goods of Mexico.

Section 334 of the Uruguay Round Agreements Act (URAA)(codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Additionally, 102.21(d) addresses the treatment of sets for country of origin purposes. Section 102.21(d) provides the following:

Where a good classifiable in the HTSUS as a set includes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be determined under paragraph (c) of this section, the country of origin of each component of the set that is a textile or apparel product shall be determined separately under paragraph (c) of this section.

Thus, per the terms of 102.21(d), the country of origin of each item in each of the sets must be determined separately if there is not a single country of origin for the entire set.

Section 102.21(c)(1) states that "[t]he country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." Based on the information you provided, the comforter, the bed skirt, and the pillow shams are not wholly obtained or produced in a single country, territory or insular possession. Accordingly, 102.21(c)(1) is inapplicable to the comforter, pillow sham or bed skirt.

Section 102.21(c)(2) states that "[w]here the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each foreign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section".

Paragraph (e) in pertinent part states that "(1) [t]he following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:"

6301-6306 Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

9404.90 Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

Based on the information provided, the goods at issue are not provided for in 19 CFR 102.21(e)(2) because none of the fabrics from which they are made are dyed and printed and processed using two or more finishing operations as described in the rule.

Where the pillow shams are comprised of fabrics that are formed in a single country, 102.21(c)(2) applies and the country of origin of the pillow shams initially appears to be the country where the fabric is woven.

Where the comforters, pillow shams, and bed skirts are comprised of fabrics formed in more than one country, the terms of the tariff shift are not met and 102.21(c)(2) is inapplicable for purposes of determining origin for these goods.

Section 102.21(c)(3) states that, where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section:

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject articles are not knit and the comforters are classified in subheading 9404.90, HTSUS, the pillow shams in 6304, HTSUS, and the bed skirts in 6303, HTSUS, section 102.21(c)(3) is not determinative of origin for these items.

Section 102.21(c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred. Customs held in HQ 562498 that for a comforter, the fabric making process for the outer shell of the comforter constituted the most important manufacturing process. Therefore, when the fabric of the outer shell of the comforter originates in a single country, the origin is the country in which the fabric of the outer shell was formed, i.e. China, Taiwan or India.

Similarly, CBP held in HQ 959327, dated June 24, 1996, that the fabric-making process is the most important manufacturing process for a pillow sham. In HQ 959982, dated January 22, 1997, in which a pillow sham and comforter, among other items, were made from fabrics formed in more than one country, CBP determined that each fabric (the front panel fabric and the back panel fabric in the case of the pillow sham, and the top and bottom fabrics in the case of the comforter) was equally important in considering the origin of the goods. For a bed skirt, CBP has also held in HQ 965739, dated June 27, 2002, the most important manufacturing process occurs at the time of fabric making and that if the fabric is sourced from more than one country, the skirt and the platform portion are considered equally important.

The fabrics for the outer shell of the subject comforter and pillow shams may in some cases originate in more than one country, and the fabrics of the bed skirt are sourced in more than one country. As no one fabric or component is more important than the other due to the combination of these materials, a single country of origin determination for the comforters, pillow shams, and bed skirts, so produced, cannot be made based on Section 102.21(c)(4).

Paragraph (c)(5) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory or insular possession in which an important assembly or manufacturing process occurred."

In the case of the comforter, pillow shams, and bed skirts comprised of fabrics formed in more than one country, the country of origin is conferred by the last country in which an important assembly or manufacturing process occurred. In this instance, the fabrics for the comforter have been cut, sewn, stuffed and quilted into the finished comforter in Mexico. Likewise, the fabrics for the pillow sham and bed skirt have been cut and sewn into the finished articles in Mexico. The finished comforter, pillow shams and bed skirt are then packed in Mexico for retail sale. The country of origin of the comforter, pillow shams and bed skirt, as well as "comforter sets" comprised of fabrics formed in more than one country is, therefore, Mexico, the last country in which the articles underwent an important assembly or manufacturing process.

In the case of "comforter sets", consisting of pillow shams and bed skirts comprised of fabrics formed in more than one country, and a comforter, the fabric of the outer shell of which originates in a single country other than Mexico, the origin of the pillow shams and bed skirts would be Mexico and the origin of the comforter would appear to be the country in which the fabric of the outer shell of the comforter was formed, in this case China, Taiwan or India. Additionally, if the pillow shams were comprised of fabrics formed in a single country, the origin of the pillow shams would be the country in which the fabric was formed. Thus, it appears that a single country of origin for the "set" cannot be determined.

However, 102.19(a) of the Customs Regulations (19 CFR 102.19(a)) provides for a NAFTA override and states as follows:

Except in the case of goods covered by paragraph (b) of this section, if a good which is originating within the meaning of §181.1(q) of this chapter is not determined under 102.11(a) or (b) or §102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA country in which that good underwent production other than minor processing, provided that a Certificate of Origin (see 181.11 of this chapter) has been completed and signed for the good.

Thus, the next question presented in this case is whether or not the NAFTA override entitles all the items in the comforter set to be marked "MX". Since we have previously determined that the items in the set are "originating" for purposes of the NAFTA preference rule applicable to the set, it is CBP's belief that Section 102.19(a) operates as an override for all the items in the set and all the items are entitled to be marked "MX". Although packing is considered a non-qualifying operation under Section 102.17, the cutting of the fabric and assembly of the comforter, bed skirt and pillow shams in Mexico meets the requirement that the good undergo production other than minor processing. CBP has previously stated that as long as one item in the set undergoes production other than minor processing, the remaining items in the set will receive the benefit of the NAFTA override. See HQ 559421, dated September 16, 1996; HQ 560577, dated August 4, 1997; HQ 560456, dated September 26, 1997; and HQ 560992, dated July 6, 1998. In this case, each item in the set undergoes production other than minor processing in Mexico. Each item in the set qualifies to be marked "MX". As each item in the comforter set has been found to be originating and qualifies to be marked "MX", the comforter set is entitled to the special "MX" duty rate, provided that all other requirements of the NAFTA are met.

The comforter, imported separately, would qualify as a NAFTA originating good because when the Chinese, Taiwanese, or Indian fabric, classifiable in either heading 5407 or 5516, HTSUS, is made in Mexico into the comforter shell, a transitional article in the production of the comforter is produced. The transition article, the comforter shell classifiable in heading 6307, HTSUS, and deemed non-originating as permitted by the NAFTA rules of origin "self-produced material" rule, thereafter makes the tariff shift to subheading 9404.90, HTSUS. See 19 C.F.R. Part 181 Appendix section 4 (8); and GN 12 (t)/94.7. The comforter, if imported separately, is a NAFTA "originating" good and, when the outer shell is comprised of fabrics from more than one country, by application of 19 CFR 102.21, qualifies to be marked as country of origin Mexico. When the comforter's outer shell is comprised of fabric from a single country, by application of 19 CFR 102.19, the comforter qualifies to be marked as country of origin Mexico.

Where the pillow shams and bed skirt are comprised of fabrics formed in more than one country, the country of origin is conferred by the last country in which an important assembly or manufacturing operation occurred (Mexico). These pillow shams and bed skirt, if imported separately, qualify to be marked as country of origin Mexico.

Where the pillow shams are comprised of fabric that is formed in a single country, 102.21(c)(2) applies. Therefore, pursuant to 102.21(c)(2), the country of origin of the pillow shams is the country where the fabric is woven (China, Taiwan or India). These pillow shams would not qualify to be marked as country of origin Mexico, if imported separately.

Quota / Visa Requirements

The "comforter set" consisting of a comforter, bed skirt, and pillow sham, although part of a set for classification purposes, are treated for quota and visa purposes as if they are imported separately. Section 204 of the Agricultural Act of 1956, 7 U.S.C. 1854, as amended, authorizes the President to limit importation into the United States of any textile or textile product. The President, in Executive Order 11651, 37 Fed. Reg. 4699 (March 4, 1972), delegated the authority to supervise and implement all textile agreements and arrangements negotiated pursuant to Section 204 to the Committee for the Implementation of Textile Agreements (CITA).

CITA requires, as originally set forth in 53 Fed. Reg. 52765 (Dec. 29, 1988), clarified in 54 Fed. Reg. 35223 (Aug. 24, 1989) and reconfirmed in 67 Fed. Reg. 12977 (Mar. 20, 2002) that:
all applicable visa and quota requirements will apply for textiles and their products which are classified as parts of a set. The rule applies to all items which, if imported separately, would require a visa and the reporting of quota.

Therefore, when the pillow shams of an originating "comforter set" are made of fabric from a single country other than Mexico, or the outer shell of the comforter is formed in a single country other than Mexico, i.e., China, Taiwan or India, these goods may be subject to visa/quota requirements although the "set" is originating and may be marked as a product of Mexico.

HOLDING:

The "comforter set" consisting of the comforter, pillow shams, and bed skirt, is classified as a set in subheading 9404.90.8522, Harmonized Tariff Schedule of the United States Annotated, and is entitled to the "Special" Column 1 "MX" NAFTA rate of duty.

The comforter, if imported separately, is classified in subheading 9404.90.8522, Harmonized Tariff Schedule of the United States Annotated, and is entitled to the "Special" Column 1 "MX" NAFTA rate of duty.

The Special Column 1 "MX" NAFTA Rate of Duty is FREE.

There are no quota reporting or visa requirements for goods of Mexico. The applicable textile quota category, if the comforter classified in subheading 9404.90.8522, HTSUSA, is not a good of Mexico, is category: 666.

The pillow shams, if imported separately, are not "originating" goods under the NAFTA and are classifiable in subheading 6304.99.6020, HTSUSA, if of artificial fibers, or in subheading 6304.93.0000, HTSUSA, if of synthetic fibers, depending upon whether the fabric from which they are made is in chief weight of artificial or synthetic fibers. The applicable textile quota category is 666. The general column 1 rate of duty is 3.5 percent ad valorem for goods classifiable in subheading 6304.99.6020, HTSUSA, and 9.4 percent ad valorem for goods classifiable in subheading 6304.93.0000, HTSUSA. If made entirely of fabric from China, Taiwan or India, the pillow shams are goods of China, Taiwan or India, for quota/visa purposes. If comprised of fabrics formed in more than one country, the country of origin is Mexico.

Insofar as the bed skirt is concerned, the skirt is made from 100 percent man-made fibers woven in China, and the platform aspect of which will be made from bleached white 50 percent poly/50 percent cotton fabric woven in Mexico. The bed skirt, if imported separately, is classifiable in subheading 6303.99.0010, HTSUSA, if of artificial fibers, or in subheading 6303.92.2020, if of synthetic fibers, depending upon whether the fabric from which it is made is in chief weight of artificial or synthetic fibers. The applicable textile quota category is 666. The general column 1 rate of duty is 11.4 percent ad valorem for goods classified in either of these subheadings. As the bed skirt is comprised of fabrics formed in more than one country, the country of origin is Mexico

There are no applicable quota/visa requirements for products of World Trade Organization (WTO) member-countries as textile quota category 666 has been partially integrated for the relevant subheadings. The textile category number above applies to merchandise produced in countries that are not members of the WTO.

The designated textile and apparel category may be subdivided into parts. If so, the visa and quota requirements applicable to the subject merchandise may be affected. Since part categories are the result of international bilateral agreements which are subject to frequent renegotiations and changes, to obtain the most current information available, we suggest your client check, close to the time of shipment, the Textile Status Report for Absolute Quotas previously available on the Customs Electronic Bulletin Board (CEBB) which is now available on the CBP Website at www.cbp.gov.

Due to the changeable nature of the statistical annotation (the ninth and tenth digits of the classification) and the restraint (quota/visa) categories, your client should contact the local CBP office prior to importation of this merchandise to determine the current status of any import restraints or requirements.

Sincerely,


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See also:

• Tariff No.: 6209.20.50 - Babies' garments & clothing acc. nesoi, of cotton, incl. sunsuits & sim app, sets & parts of sets, & diapers, not knitted or crocheted
• Tariff No.: 6303.92.20 - Curtains (including drapes), interior blinds and valances, nesoi, of synthetic fibers, not knitted or crocheted
• Tariff No.: 6303.99.00 - Curtains (including drapes),interior blinds, valances of textile materials other than of cotton or of synthetic fibers,not knitted/crocheted
• Tariff No.: 6304.93.00 - Furnishing articles (excluding those of heading 9404 and other than bedspreads) not knitted or crocheted, of synthetic fibers
• Tariff No.: 6304.99.60 - Furnishing articles (excluding those of heading 9404 and other than bedspreads) not knitted or crocheted, of textile materials, nesoi
• Tariff No.: 9404.90.85 - Quilts, eiderdowns, comforters and similar articles, not of cotton